Proposed new tax regime has removed 70 tax-exemptions and deductions. However, there are certain incomes that are exempt in the new tax regime. Given below is the list of such incomes that are exempted from tax in the new regime.
An individual taxpayer opting for the new tax regime would have to forgo 70 tax exemptions and deductions. These include deductions under: section 80C for a maximum of Rs 1.5 lakh claimed by investing in specified financial products, section 80D for health insurance premiums paid, 80TTA for deduction on savings account interest earned from a bank or post office etc.
However, there are certain tax-exemptions that have been left unchanged in the Finance Bill, 2020.
Here is the list of incomes that are exempted from income tax under the new tax regime proposed in Budget 2020:
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Interest received on post office savings account balances
The interest received on post office savings account balance is exempted under section 10(15)(i) of the Income-tax Act up to a certain limit. Interest received from post office savings account was exempted from tax via a notification dated June 3, 2011 for up to Rs 3,500 in case of individual accounts and Rs 7,000 in case of joint accounts per financial year.
Source: Economic Times
